Search

What is the lifespan of a family trust?

South African trust law does not prescribe a general maximum lifespan for an inter vivos trust. A trust can therefore continue for a long period, including across generations, if its trust deed permits this and it continues to have a…

Why do you need a family trust?

You do not necessarily need a family trust. It is one planning tool that can be useful where a family wants assets to be managed separately from individual ownership and according to rules that can continue across death, incapacity or…

What assets can a family trust hold?

A family trust can hold a wide range of assets, subject to the trust deed and any law that applies to the particular asset. Common examples include immovable property, listed and unlisted shares, unit trusts and exchange-traded funds, cash and…

What is a family trust?

A family trust is the informal term commonly used for a trust established to hold and administer assets for the benefit of members of a family. It is not a separate legal category under South African law. Most family trusts…

When to use an inter vivos trust?

An inter vivos trust is most useful where there is a clear long-term purpose that justifies separating assets from personal ownership and accepting the governance and tax obligations that follow. Common examples include preserving family or business assets across generations,…

How much does it cost to set up a family trust in South Africa?

There is no prescribed market price for establishing a family trust in South Africa. Professional fees depend on the complexity of the trust deed, the advice required, the number and nature of the parties, and whether the trust forms part…

Who is the beneficiary of an inter vivos trust?

The beneficiaries of an inter vivos trust are the persons, entities or determinable classes identified in the trust deed as those for whose benefit the trust is administered. They may include individuals, companies, other trusts or a clearly defined class…

Can a trustee be a beneficiary of a trust?

Yes. A trustee may also be a beneficiary of the same trust. This is common in South African family trusts, where family members may serve as trustees while also being discretionary beneficiaries. There is, however, an important limit at the…

How many trustees must a trust have in South Africa?

South African legislation does not prescribe one minimum number of trustees for every trust. The Trust Property Control Act requires trustees to be authorised by the Master, but the number required to act is primarily determined by the trust deed…

What is an example of an inter vivos trust?

A common example is a family discretionary trust established during the founders’ lifetime to hold long-term investments or shares in a family business for the benefit of family members. The trust deed identifies the beneficiaries and appoints trustees, who manage…